PZ Cussons Plc, a maker of personal healthcare and consumer goods, returned to profitability after a year of loss, as consumers’ habit in response to COVID-19 helped increase sales.
For the nine months period ended 28 February 2021, PZ Cusson’s posted a profit of N1 billion, an impressive performance when compared with a loss of N3.51 billion recorded in the same period the previous year. PZ Cusson’s has a unique calendar that runs from May 2020 to May 2021.“
The company raised prices on a number of products last year which supported revenue growth and margin expansion,” Ayorinde Akinloye, a research analyst at CSL Stockbrokers said.
PZ revenue grew 9.5 percent to N60 billion in the business year compared to N54.7 billion in the same period a year before. The share price remained flat at N4.85 per share, Thursday.
Gross margin was up 27 percent in the period compared to 23 percent in the previous year.
Cost of sales plunged 5.7 percent to N43.6 billion from N46.2 billion in the same period last year.
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Consequently, gross profit for the period jumped 93 percent to N16.3 billion in the business period from N8.4 billion a year before.
PZ revenue was also helped by the sale of factory premises situated within plot 20A Ikorodu Industrial Scheme, Ikorodu, Lagos; a property which the firm sold to Friesland Campina Wamco Nigeria Plc.
The company received a sum of N2.1 billion as consideration for the sales resulting in profit on disposal of N1.949 billion subject to a capital gains tax of N207 million.
The company’s selling and distribution costs declined 11.2 percent to N6.9 billion from N7.8 billion the previous year.
Administrative expenses also rose 21 percent to N5.4 billion for the 2020/ 2021 period from N4.4 billion in 2019/2020.
PZ made a profit before tax of N1.5 billion from a loss of N4 billion in the same period the previous year. The personal health care maker saw its operating profit rise 201 percent to N3.92 billion from a loss of N3.86 billion in the same period 2019/2020.
However, earnings per share fell to N26 per share from N89 per share in the periods under review
The company also made a foreign exchange loss of N4.59 billion, a whopping 3,516 percent increase from a loss N127 billion recorded in the same period last year.
A sum of N488.3 million was paid in tax in the period under review from N488.2 million in the same period a year before.
Net finance cost fell 155 percent to N84 million in the 2020/ 2021 period from N153 million in the 2019/2020 period.
Interest income fell 41 percent to N153 million from N262 million in the periods under review.
PZ engages in the manufacture, distribution and sale of a wide range of consumer products and home appliances through owned depots.
These products are leading brand names throughout the country in detergent, soap, cosmetics, refrigerators, freezers and air conditioners. The group also distributes products of Nutricima Limited, Harefield Industrial Nigeria Limited and PZ Wilmar Food Limited.
